Reference no: EM133107188

Questions -

Q1. You own a pet wholesale business. You sell fish. You would like to have a population of 300,000 neon tetra fish to sell to your retailers. If cared for well, neon tetras reproduce quickly. You estimate that your fish population can grow at a rate of 300% per year. Your goal is to have the 300,000 fish at the end of five years. How many fish do you need to start with, in order to reach your goal?

Q2. Jimmy wants to have $1,000,000 on the day he retires (34 years from now). He is planning on earning 10.0% from his investments. How much will he need to invest per month, in order to reach his goal?

Q3. You wish to have $1,000,000. You will invest $600 per month, earning 8% per year. How many months until you reach $1 million in total value?

Q4. Assume a home mortgage of $200,000, with an interest rate of 5.5% for 30 years (monthly payments). If you pay an extra $300 per month towards the principle of the loan, how many months will it be until you pay off the loan?

Q5. What is the present value (PV) of a series of payments of $6,000 per year for 12 years, discounted at a rate of 7% (annual)?

Q6. (Assuming all other factors remain constant) When calculating FV, if the interest rate is higher, what will be the effect?

Q7. You invest $455 per month for 36 years. You earn 10.25% (annual) over that time frame. What is the future value (FV)?

Q8. Which of the following statements most accurately represents our discussion on the role of a corporation?

Maximizing profits is most important

Minimizing costs is most important.

Maximizing sales is most important

Maximizing shareholder value is most important.

Q9. Given a payment of $3,000 per year for 20 years and a 7% annual discount rate, what is the present value?

Q10. You invested $3,950 in an original Salvador Dali 'melted clocks' painting 30 years ago. The painting has increased in value at a rate of 10% per year. How much is it worth now.